The founders of Great Learning, the edtech startup acquired by BYJU’S in 2021 for $600 Mn, are reportedly in talks with investors to raise funds to buy the company back from the Byju Raveendran-led embattled decacorn.

The management buyback arrangement will enable the founders to run the edtech firm and secure equity payouts in return, Mint reported.

The prospective incoming investor has an interest in the continued involvement of the founding team and existing management of the company. As discussions unfold, various structural possibilities are being explored to shape the eventual arrangement, the report said citing a source.

As per another source, the founders may consider negotiating an additional equity stake with an investor consortium following the potential buyback.

The discussions surrounding Great Learning are currently in their preliminary stages. It is anticipated that a formal process will be initiated once the Epic deal progresses to a more concrete stage.

Last month, it was reported that the cash-strapped BYJU’S is looking to raise $800 Mn and $1 Bn by selling Epic and Great Learning to repay its $1.2 Bn Term Loan B.

Founded by Arjun Nair, Hari Nair, and Mohan Lakhamraju in 2013, Great Learning offers comprehensive, industry-relevant programs across various technology, data and business domains.

The latest development comes at a time when BYJU’S is fighting multiple battles. Besides the controversy over the repayment of its $1.2 Bn loan, delay in publishing its financial statements, resignations of board members and auditors, among others, have hit the edtech decacorn hard.

The edtech startup recently missed the deadline to release its much-delayed financial numbers for FY22. The company said it has convened a meeting of its board members in the second week of October to approve and adopt its financial statements for FY22.

Amid the troubles, BYJU’S is also looking to fire over 4,000 employees in a restructuring exercise.